Another question on Full and Finals

flossieflipflop

Hi

One more quick question;

Has anyone ever heard of a full and final settlement being offered over a few months of payments.

I have enough to offer one creditor a F and F in one lump sum (on another thread) but also want to try and organise one with another creditor. This money would come from my husband who has some overtime lined up for next few months so I could offer the creditor £250 per month for 4 months for a 60% settlement. Has anyone done this? Would they accept this method of a F and F?

Thanks

bottleofred

Hi Flossiflipflop,

I have paid a reduced amount over a period of time as a full and final settlement, but I can't help thinking it reduces your bargaining power and I probably could have paid less if I'd been able to settle immediately. However, if your creditor goes for it and you are happy with the amount, then go ahead. HOWEVER, be sure to get everything in writing and ensure the words "as full and final settlement" are somewhere in the letter with the agreed amount over the required/agreed period of time, as capquest got one over on me!

flossieflipflop

Thank you!

I did a search online and couldn't see anything about it.

I'm not too worried about bargaining power as would like to pay off as much as I can (I have a lot of guilt about owing the money but feel 60% is fair as the rest is mostly charges etc).

I guess if they say no I can save the money and offer a lump sum further down the line.

Thanks again

fatbelly

MBNA have been known to agree to spread F&F deals over 2 or three months. However, Red is right that you are likely to get a better deal by offering one lump sum.

jadex

You are adding one possible risk to such scenario (which you are probably currently deem unlikely but you never know the future for certain): what if you pay 3 instalments and then will not be able to pay the last one on time? It will surely invalidate your deal.
Why not accumulate the money over the next 4 months and then do offer F&F as you said?

flossieflipflop wrote: »

I guess if they say no I can save the money and offer a lump sum further down the line.

Maybe they will be more happy to accept lower amounts around Xmas as they also need fund somehow their end-of-year bonuses (just maybe...)